LOWELL, Ark. — J.B. Hunt Transport Services Inc. and Burlington Northern Santa Fe, LLC announced today that J.B. Hunt subsidiary, J.B. Hunt Transport, Inc., has entered into a definitive agreement to acquire the brokerage operations of BNSF Logistics, LLC.
BNSF Logistics, LLC is an affiliate of BNSF Railway Company (BNSF). It provides third-party logistics services for the movement of full truckload, flatbed, temp-controlled, drayage, expedited, and less-than- truckload services. BNSF Logistics also provides warehouse, retail specialty, heavy-haul and project services, which the companies said are not included in the transaction.
“As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with 3PL services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°,” said John Roberts, CEO of J.B. Hunt. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.”
The companies said that J.B. Hunt and BNSF Railway disrupted the transportation industry in 1989 by developing a double-stack shipping solution that would complement both rail and trucking services, considered a first for modern transportation. In March 2022, they launched a joint effort to substantially improve capacity in the intermodal marketplace.
Officials said that this new development “will build on a long-term business relationship and strategic vision to provide efficient, value-added solutions for customers across the North American supply chain.”
“This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said Katie Farmer, president and chief executive officer of BNSF Railway. “This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.”
Following the closing of the transaction by year end, the brokerage operations of BNSF Logistics will be part of J.B. Hunt’s Integrated Capacity Solutions (ICS) for segment reporting purposes. J.B. Hunt will fund the purchase with its existing cash balance. The companies did not reveal a purchase price for the planned acquisition.
“BNSF Logistics has shown strong performance in serving customers of all sizes,” said Brad Hicks, executive vice president of People and president of Highway Services at J.B. Hunt. “Complemented with our best-in-class intermodal and J.B. Hunt 360box power-only service offering, this acquisition will provide a compelling value proposition for customers, growth opportunities for J.B. Hunt and greater service capabilities for BNSF Logistics’ employee and agent model.”
BNSF Logistics provides value-added 3PL services for BNSF Railway. Upon closing the transaction, BNSF Railway and J.B. Hunt said they will enter into a long-term service agreement in which J.B. Hunt continues to provide those services for BNSF Railway.